Diversified Energy in early talks to acquire Birch Resources

Diversified Energy has confirmed it is engaged in preliminary discussions regarding a potential acquisition of Birch Resources. The company emphasized that the talks are in an early stage and cautioned that no agreement has been reached. There is currently no certainty that a transaction will occur or what the specific terms might be.

Birch Resources, which is backed by Elliott Investment Management, operates in the Permian Basin, the largest oilfield in the United States. Reports suggest a potential all-cash transaction could value Birch at more than $1.7 billion. This move follows Diversified Energy’s recent acquisition of Maverick Natural Resources for $1.28 billion, as the company seeks to expand its footprint in the Permian Basin.